PPG Industries (NYSE:PPG) Announces Share Repurchase Program

PPG Industries (NYSE:PPG) declared that its Board of Directors has approved a stock repurchase program on Thursday, April 18th, RTT News reports. The company plans to repurchase $2.50 billion in outstanding shares. This repurchase authorization allows the specialty chemicals company to repurchase up to 8.1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

PPG Industries Stock Performance

PPG stock opened at $131.13 on Tuesday. The company has a quick ratio of 1.05, a current ratio of 1.47 and a debt-to-equity ratio of 0.72. PPG Industries has a twelve month low of $120.32 and a twelve month high of $152.89. The business’s fifty day moving average is $140.16 and its 200-day moving average is $138.99. The company has a market cap of $30.86 billion, a P/E ratio of 22.15, a price-to-earnings-growth ratio of 1.56 and a beta of 1.28.

PPG Industries (NYSE:PPG) last released its quarterly earnings data on Friday, April 19th. The specialty chemicals company reported $1.86 EPS for the quarter, meeting analysts’ consensus estimates of $1.86. PPG Industries had a net margin of 7.74% and a return on equity of 23.13%. The business had revenue of $4.31 billion during the quarter, compared to analysts’ expectations of $4.43 billion. During the same quarter in the prior year, the company earned $1.82 EPS. The firm’s quarterly revenue was down 1.6% on a year-over-year basis. Equities research analysts forecast that PPG Industries will post 8.46 EPS for the current year.

PPG Industries Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 12th. Investors of record on Friday, May 10th will be given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 1.98%. The ex-dividend date of this dividend is Thursday, May 9th. PPG Industries’s dividend payout ratio is currently 43.92%.

Wall Street Analyst Weigh In

Several research analysts have recently commented on PPG shares. Royal Bank of Canada reduced their target price on PPG Industries from $156.00 to $141.00 and set a “sector perform” rating on the stock in a report on Monday. Barclays reduced their target price on PPG Industries from $149.00 to $148.00 and set an “equal weight” rating on the stock in a report on Monday. Wolfe Research started coverage on PPG Industries in a report on Friday, March 1st. They issued a “peer perform” rating on the stock. Bank of America reduced their target price on PPG Industries from $167.00 to $164.00 and set a “buy” rating on the stock in a report on Monday. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on PPG Industries from $160.00 to $155.00 and set a “buy” rating on the stock in a report on Monday. One analyst has rated the stock with a sell rating, eight have issued a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $155.50.

Insider Activity at PPG Industries

In related news, CFO Vincent J. Morales sold 3,400 shares of the company’s stock in a transaction on Friday, March 1st. The shares were sold at an average price of $140.94, for a total value of $479,196.00. Following the completion of the sale, the chief financial officer now owns 28,439 shares in the company, valued at approximately $4,008,192.66. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.56% of the stock is owned by corporate insiders.

About PPG Industries

PPG Industries, Inc manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments, Performance Coatings and Industrial Coatings. The Performance Coatings segment offers coatings, solvents, adhesives, sealants, sundries, and software for automotive and commercial transport/fleet repair and refurbishing, light industrial coatings, and specialty coatings for signs; wood stains; paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors; and coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft.